Organizational Structure’s limitations- Organizational structures have certain ineffectiveness and it discourages attitudes and behavior, among individuals and groups in the organization according to the situation. The most important limitations of organizational structures are
It overloads the important personnel
If the firm is larger and multi-dimensional then it becomes difficult to handle the structures. Then the concept of line organization becomes too difficult to handle. Knowledge areas can also be affected. Sometimes due to many product lines, the functional heads or managers have too many responsibilities to handle and they may need to be expert in that area.
Sometimes quality becomes a major problem, and due to too much work, quality is compromised.
Sometimes decision making and group inaction becomes a major issue in efficiency of organizational structure.
The administrative costs and overheads may be very high depending upon the organization structure size and the organization’s size.
There can be major confusion and conflicts between authority and responsibility, which may unstabilize the structure models.
External environment influences internal atmosphere of an organization and also influences the structures.
The informal organization is also affected by the organizational structures. This can be seen when the employees and employers are against the top management. They may work against the top management. (Yourarticlelibrary.com, 2015)
There is a direct relationship between the reactions provided by the managers and the organization structure and this is also known as attraction-selection framework. The role of the managers is also proposed as they understand the structure of the organization as well as work on the attributes of the other employees in the organization as well. The attraction and selection approach is the ultimate deciding factor which can lead to either the positive or negative factors in the organization.